Food Industry Regains Vigor Again in Five Years

May 23, 2017 08:30|May 23, 2017 08:30

Until early this year, it was not easy to buy CJ Cheiljedang's home meal replacement (HMR) brand "Gourmet Hamburger Steak." The retail price of Gourmet Hamburg Steak was only 7,980 won (for 540-gram pack), although its taste is almost like that served in famous steakhouses.

With its superior cost effectiveness rapidly going viral, it was in short supply.Thanks to Gourmet Hamburger Steak, CJ Cheiljedang chalked up sales of 25 billion won until early May. This figure is equivalent to 70 percent of last year's total sales of 35 billion won.

On the back of the growth of the HMR market, CJ Cheiljedang enjoyed a 9.3-percent growth in sales in the first quarter of this year.

Korea's food industry is regaining vigor again in five years thanks to the emergence of the new HMR market plus the decline in international grain prices, which would likely to lead an improvement in the industry's overall profitability.

In addition, the consumer sentiment that hit the bottom last year is showing signs of recovery and China's THAAD retaliatory measures are easing.

Industry experts expect the expansion of the HMR market, the settlement of the THAAD issue, and the recovery of consumer sentiment to contribute to increasing sales for the food industry.